12 hour ago
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BEARISH 📉 : Bitcoin MVRV Z-Score Hits Lowest Level Amid Price Crash
Recent on-chain data indicates that the Bitcoin MVRV Z-Score has reached its lowest point in years following a significant price drop below $80,000.
Key Points
- The Bitcoin MVRV Z-Score is an indicator comparing BTC's market cap to its Realized Cap to assess overvaluation or undervaluation.
- A positive Z-Score suggests high profitability for investors, while a negative score indicates losses.
- Currently, the MVRV Z-Score has fallen below 1, indicating reduced profitability for investors compared to past averages.
- This decline mirrors past cycles where similar drops led to further price slides, as seen during the 2022 bear market.
- The 90-day moving average of realized profits and losses has decreased to 1.5, indicating thinner liquidity conditions.
Current Market Impact
- Bitcoin is currently trading at approximately $76,000, having decreased by 15% over the past week.
